Question

As per parliamentary act 1932 if partnership does not exist partners are entitled to
Salary
Commission
Interest on capital
Equal profit share​

Answer 1

Answer:

Since there is no partnership deed, provisions of the Indian Partnership Act, 1932 will apply.

Explanation:

a)     No interest on capital is payable to any partner. Therefore, A is not entitled to interest on capital.

b)    No interest is chargeable on drawings made by the partner. Therefore, B need not pay interest on drawings.

c)     Interest on loan is payable at 6% per annum. Therefore C is to get interest at 6% per annum on ₹ 10,000.

d)    No remuneration is payable to any partner. Hence, D is not entitled to salary.

e)     Profits should be distributed equally.

Answer 2

As per parliamentary act 1932 if partnership does not exist partners are entitled to Interest on capital.

Hence Option C is correct!